for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

UPDATE 1-Moody's upgrades Deutsche Bank, says outlook positive

(Updates with details)

FRANKFURT, Aug 4 (Reuters) - Moody’s said on Wednesday it had upgraded Deutsche Bank’s credit rating and the outlook was positive.

Credit ratings agencies have recently taken a rosier view of Germany’s largest lender as the bank returned to profit after years of losses.

Moody’s lifted Deutsche’s long-term rating to A2 from A3, and the positive outlook means further increases could be in the offing.

The bank is “likely to make continued progress towards meeting its medium-term targets, in particular by being able to sustain adequate, yet still relatively modest, profitability”, Moody’s said.

The bank embarked on a restructuring in 2019, closing some businesses and shedding thousands of staff in an effort to return to profitability. In 2020, the bank posted its first full-year profit since 2014.

Credit ratings are critical for any company but especially for a bank such as Deutsche, which, like all financial institutions, is a big issuer of debt securities.

Higher ratings can result in lower funding costs, helping Deutsche return to more sustainable profitability. (Reporting by Tom Sims Editing by Mark Heinrich, Kirsten Donovan)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up